Business Tax Returns

Due Date

Annual Income Tax Returns

All Springboro Net Profit Income Tax Returns must be filed on or before the 18th day of April, or 3 1/2 months after the fiscal year end.

Extensions

For taxable years 2016 and after, a taxpayer can request a 6-month extension of time in which to file their Springboro Income Tax Return.

Taxpayers who requested or received a federal extension automatically receive a 6-month extension on their municipal income tax return. A copy of the federal extension must be attached to the city return when filed. If the taxpayer has not filed a federal extension, the Springboro extension request must be received on or before April 18 or 3.5 months after the fiscal year-end.

Withholding Remittance - Effective January 1, 2016

Quarterly Withholdings: $0-$2,399, the payment is due on the last day of the next month after the quarter ends.

Monthly Withholdings: $2,400-$11,999, the payment is due on the 15th day of the next.

Electronic Filing Now Available

Due to ordinance change, all employers who are required to withhold City of Springboro Income Taxes will be required to remit payments electronically, unless the Administrator gives exemption for cases in which such requirement would constitute a substantial hardship on the employer.

The Springboro Income Tax Department has in place two ways in which employers may file and pay their withholding tax payments by EFT. They are the ACH Credit Program and the E-Payment Program. All employers who currently remit employee withholding tax payments to the City of Springboro are eligible to use either program.

E-Payment Program

The E-Payment Program allows the employer to log on to our secure website and initiate ACH debit to remit employee withholding taxes to the City of Springboro. Participation in this program is free.

ACH Credit Program

The ACH Credit Program allows the employer to schedule the date on which their withholding taxes will be deducted from their bank account. With this program, the employer must contact their bank to have them send the payment to the City of Springboro.

Ohio Board of Appeals

Following an appeal to a local Board of Review, a municipal income tax appeal may now be made to either common pleas court or to the Ohio Board of Appeals. This applies to tax years beginning in 2004.

Allocation Formula

Apportionment

The name of the formula is changed to match Ohio's definition.

Original Cost

Property value determined based on the original cost of property not the net book value.

Separate Books & Records

Taxpayers are required to compute apportionment based on three-factor formula unless a substitute method, in the regulations, provides an equitable result.

Qualifying Wages - Effective January 1, 2004

An employer is required to withhold only on "qualifying wages," which are wages as defined in IRC Section 3121(a), generally the Medicare Wage in Box 5 of the Form W-2, with an exception to include exempt employees hired before April 1, 1986.

Cafeteria Plans

IRC Section 125 wages are not taxable. Therefore, they are not included in the definition of Medicare wages and therefore are not included in Box 5 (the Medicare Wage box) of the W-2.

Stock Options

Income from the exercise of stock options is included in the definition of "qualifying wages," but income may be excluded from taxation as local option. Springboro does tax stock option income.

Nonqualified Deferred Compensation Plan

Income from nonqualified plans is included in the definition of "qualifying wages" at the time they are deferred, but income may be excluded from taxation as a local option. Distributions received after December 31, 2003 will no longer be subject to local taxation. Springboro does tax nonqualified deferred compensation income.

401K, 457 & Supplemental Unemployment Compensation Benefits

These items all should be included in Box 5 and subject to withholding requirements.

Disqualifying Disposition of an Incentive Stock Option

Employer is not required to withhold, but the income is considered "qualifying wages" and the recipient is liable for the tax.

Note: An explanation of why Box 5 is not the largest wage figure on the W-2 (ex: Health insurance benefits for greater than 2% shareholder in S corporation) will reduce inquiries from the Tax Department.

Meals & Entertainment Expenses

Meals and entertainment expenses are deductible on the Springboro return in the same percentage allowable on the federal return.

Bonus Depreciation & Section 179

Both deductions are allowable deductions as supported by the taxpayer's federal schedules.

Uniform Definition of Taxable Income for Net Profits/Business (Other Than Individuals)

Note that partnerships and S-corporations must file their returns as if they are C corporations. Begin with a C corporation's federal taxable income before net operating losses, special deductions and make the following adjustments:

Deduct intangible (interest, dividends, royalties...) income (ORC Section 718.01(A)(5)) includes patents, copyrights, trademarks and other investments. Does not include lottery winnings.

Add back 5% of Intangible Income. (Exclude capital gains and losses from computation.)

Add back capital losses and 1231 losses. (1231 are considered ordinary losses for IRS.)